Louisiana taxpayers challenging a state or local tax collector’s refund claim denial may only seek relief under the state’s ‘payment under protest’ procedure. However, the Louisiana Supreme Court held that when the tax collector fails to act on a refund claim (as opposed to issuing a denial), a taxpayer is not required to pay under protest, and therefore may seek relief under alternative remedies such as the state’s ‘overpayment refund procedure.’
The state’s ‘overpayment refund procedure’ provides time limitations for a taxpayer’s request for an appeal or redetermination of a tax collector’s determination. Such time limitations do not apply when the collector has failed to act on a refund request. The limitations apply only when the collector has affirmatively denied a refund request.
Louisiana taxpayers with state or local refund claims that have not been acted on by the relevant tax administrator may be able to seek refunds despite the amount of time since the claims were originally filed.